KHNP, Candu Energy and Ansaldo Nucleare sign Cernavoda 1 refurb deal

Thursday, 19 December 2024

Romania's Nuclearelectrica has ceremonially signed the engineering, procurement and construction contract for the estimated EUR1.9 billion (USD1.97 billion) refurbishment of Cernavoda unit 1 with a consortium of Korea Hydro & Nuclear Power, AtkinsRealis's Candu Energy, Canadian Commercial Corporation and Ansaldo Nucleare.

KHNP, Candu Energy and Ansaldo Nucleare sign Cernavoda 1 refurb deal
The signing was in the presence of, back row from left: Valeria Baistrocchi, chargé d’affaires at the Italian Embassy; Rim Kap-soo, ambassador of the Republic of Korea; the Head of Romania's Prime Minister’s Chancellery, Alexandru-Mihai Ghigiu; Romania's Energy Minister Sebastian Burduja and Canada's ambassador Gavin Buchan (Image: KHNP)

The engineering, procurement and construction (EPC) contract covers the development of the detailed design, procurement of equipment and materials, execution of retubing works and refurbishment works as well as construction of the necessary infrastructure. Its entry into force is subject to the approval of Nuclearelectrica's shareholders (it is 82.49% state-owned) and the approval of the Canadian government.

Candu units are pressurised heavy water reactors designed to operate for 30 years, with a further 30 years available subject to refurbishment. This includes the replacement of key reactor components such as steam generators, pressure tubes, calandria tubes and feeder tubes. It involves removing all the reactor's fuel and heavy water and isolating it from the rest of the power station before it is dismantled. Thousands of components, including those that are not accessible when the reactor is assembled, are inspected, and all 480 fuel channels and 960 feeder tubes are replaced during the high-precision rebuild.

Cernavoda is the only nuclear power plant in Romania and consists of two 650 MWe Candu reactors. Unit 1 went into commercial operation in 1996 and unit 2 in 2007. Most of the work on units 3 and 4 - like units 1 and 2, Candu-6 reactors - was done in the 1980s prior to the fall of the government of Nicolae Ceausescu in 1989. Work is now on-going to construct units 3 and 4, with scheduled commercial operation in 2030 and 2031.

The unit 1 refurbishment project began in 2017 and is currently in the second of three phases. This phase, due to last from February 2022 to 2026, covers providing the financial resources, negotiating and granting engineering, procurement and construction contracts, assessing, preparing and scheduling the activities to be carried out and obtaining all the authorisations and approvals necessary to start the project. The third phase, scheduled for 2027 to 2029, starts with the shutdown of unit 1 and includes all the work required on it and its recommissioning.

Cosmin Ghita, Nuclearelectrica CEO, said: "The goal for Cernavoda NPP unit 1 refurbishment is to ensure the operation of the unit for another life cycle in conditions of safety and economic efficiency ... carried out according to standards of excellence and the international experience gained from the refurbishment of the other Candu nuclear units worldwide. This is a key project which will extend unit 1’s operational life by 30 years to support Romania’s decarbonisation goals by avoiding an additional 5 million tonnes of CO2 emissions annually. We are keen to work with internationally renowned partners which have historically contributed to the current operational performance of Cernavoda units 1 and 2."

Candu Energy, the original supplier of the reactor technology for Cernavoda unit 1, and Ansaldo Nucleare will lead the engineering and procurement aspects of the Nuclear Steam Plant and Balance of Plant, respectively. AtkinsRealis said its portion of the contract was valued at USD937 million. KHNP said it would oversee the entire execution process including replacement of major components, and the construction of main infrastructure such as a radioactive waste storage facility. KHNP’s share of the project amounts to approximately EUR840 million. KHNP will work alongside key domestic partners, including KEPCO KPS, Doosan Enerbility, Hyundai E&C and Samsung C&T.

Joe St Julian, President, Nuclear, at AtkinsRealis, said: "The last seven Candu reactors built around the world, and the ongoing life extension of 10 Candu reactors in Ontario, have been conducted on time and on budget. As the only organisation that has taken a leading role in every Candu reactor life extension project to date globally, our unmatched track record of executing on schedule, cost, safety, and quality performance, along with the expertise of our top-tier, proven consortium partners, will deliver this project for Romania at and above their expectations."

Whang Joo-ho, President and CEO of KHNP, said: "This achievement reaffirms the global recognition of KHNP’s operation and maintenance expertise, cultivated over five decades. Through the successful completion of the Cernavoda unit 1 refurbishment project, we will further strengthen KHNP’s global presence."

Daniela Gentile, CEO of Ansaldo Nucleare, said the signing of the contract "reaffirms the enduring trust that Nuclearelectrica has consistently placed in us and our partners, endorsing our expertise. This achievement not only strengthens our partnership with Nuclearelectrica but also, following the signing of the EPCM contract for Cernavoda units 3 and 4 during COP29 in Baku, further consolidates Ansaldo Nucleare’s presence in Romania”.

Bobby Kwon, President and CEO of Canadian Commerical Corporation (CCC), said: "CCC appreciates the confidence that Romania has demonstrated to-date in Canadian nuclear technology and is pleased to facilitate this important project that will ensure Romanians continue to have access to emission-free energy and helps realise Romania’s potential as a regional hub for clean electricity in Eastern Europe."

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